IS IT TRUE that tomorrow is the day that the Evansville Redevelopment Commission is poised to hear a proposal from a newly formed group from Bloomington, IN to assume the position of developer for the conversion of the abandoned McCurdy Hotel to 80 or 90 luxury apartments?…that a partner and leader of the new entity that is called McCurdy Development LLC is a St. Wendel native named Randal Lloyd?…that Mr. Lloyd once held a job in Bloomington that was the equivalent of what Evansville calls the Director of Metropolitan Development?…that would make him for local purposes the Tom Barnett of Bloomington?…that perhaps some of the skills perfected in such a position would be valuable in the refurbishment of a historic hotel and perhaps not?…that we will be curious to see just how applicable his experiences actually are and how his ability to attract capital to a project that is rather challenged from a pro-forma perspective as apartments continues to be?

IS IT TRUE that from a construction cost perspective McCurdy Development seems to have a little bit more of a realistic expectation of what the cost to refurbish a vintage hotel into 80 or so apartments will be?…that it has been reported that McCurdy Development is owning up to a new estimate of $13 Million for the job to be completed?…that this works out to $162,500 per apartment?…that we assume that the figure includes returning the lobby and other common areas to their former grandeur?…that a good rule of thumb is that the rent for such units will need to be in the range of 1% of the cost per month or $1,625 to make the project cash flow?…that renting out 80 apartments at a price of $1,625 per month in downtown Evansville is a very aggressive goal?

IS IT TRUE that it is of upmost interest to learn the whereabouts of the $800,000 that the Evansville Redevelopment Commission advanced to City Centre Development and the status of the taxes on the McCurdy that are still reported to be delinquent?…that most have assumed that the $800,000 never really changed hands and that City Centre paid that to the ERC for the McCurdy when the $1 lease for the $603,000 parking lot was signed?…that it is probably safe to assume that were it not for the approximately $1 Million first position loan held by 5th 3rd Bank on the McCurdy that assignment of the contract while unpalatable may not be terribly difficult?…that the real challenge facing the ERC in finding a future developer will be to get the 5th 3rd position satisfied and set aside?

IS IT TRUE that there is a loan on the books of the City of Evansville that was made to a predecessor to a predecessor of 5th 3rd Bank way back when the 5th 3rd Building was going up that may just hold the solution?…that if the City of Evansville and 5th 3rd Bank traded paper for these two loans that should have never been made in the first place and counted the slate clean that the way would be paved to start over down at the McCurdy with some interested and reputable developer?

IS IT TRUE that the City County Observer continues to hold the opinion that the highest and best use of the McCurdy hotel is as a VINTAGE HISTORIC HOTEL?

IS IT TRUE that today the City of Evansville and the Department of Metropolitan Development are in violation of the 30 day time period to respond to a request under the Freedom of Information Act?…that this particular request dealt with the so called FREE Johnson Controls project that would cost $51 Million except that it saves so much money that it is FREE?…that what we want to understand from this contract is exactly what the cash flows are expected to be from this project that is advertised as being FREE and what FREE really means when the dollar amount of $51 Million is still be slung around?…that we really would like to see graphically where the cash flow goes and what the sources are to be assured that the City of Evansville is not getting bamboozled once again by snake oil of our own making?

IS IT TRUE that the signal strength of the internet access points will not be sufficient to penetrate walls and will not compete with either of the local internet suppliers?…that adding this weak and uncompetitive service is also touted to bring greater Evansville’s national internet ranking from its present 368th out of 370 into the top 90?…that this is just pure speculative hogwash and when asked how the calculation was made local leaders did not even know?…that maybe this whole $51 Million deal may turn out to be FREE and CASHFLOW NEUTRAL but we doubt it?…that what is really insulting is the claim that it will raise our ranking in the internet world without competing with the two providers that have us in 368th and expecting us to believe that we will rise to the top 90?…there is no basis whatsoever for that claim to have been made and the folks that made the claim know it?…that this makes about as much sense as an NBA team signing a 50 year old that can’t jump or shoot (can’t compete) to play point guard and claim that his presence with take them from the cellar to a playoff contender?

IS IT TRUE that there are only 5 days remaining until for the first time since January 1, 2004 that the Weinzapfel Administration is not in charge of the governance of the City of Evansville?…that these 5 days represent the last opportunity for this admitted opportunist to chart the spending course of the City of Evansville for as far into the future as executive orders and special meetings of elected officials like the Evansville Redevelopment Commission and the Evansville City Council will allow him to?…that even at this late time in the stages of this administration it will take diligence to stop last minute spending of a very bold proportion?…that on Wednesday one more such spending commitment is coming before the ERC for consideration?

IS IT TRUE that Big Rivers Electric and Henderson Power and Light are finally starting to own up to what they will be spending to comply with the EPA regulations that are looming down the pike?…that yes these are the same ones that Vectren has already made the investments to get in front of that ran the rates up on this side of the money saving bridge?…that Big Rivers was reported today to be saying that they will be investing about $100 Million and that will translate into only about a 2% increase to the ratepayers?…that we tend to believe the $100 Million number but are pretty skeptical about the 2% increase?…that we expect the increase to be much more than 2%?

IS IT TRUE that there are only 6 days remaining until for the first time since January 1, 2004 that the Weinzapfel Administration is not in charge of the governance of the City of Evansville?…that these 6 days represent the last opportunity for this admitted opportunist to chart the spending course of the City of Evansville for as far into the future as executive orders and special meetings of elected officials like the Evansville Redevelopment Commission and the Evansville City Council will allow him to?…that even at this late time in the stages of this administration it will take diligence to stop last minute spending of a very bold proportion?…that on Wednesday one more such spending commitment is coming before the ERC for consideration?

IS IT TRUE that on Wednesday December 28th at 10 am in Room #307 of the Civic Center the ERC will convene to hear at least an idea and maybe as much as a full blown proposal to assign the contract that City Centre Properties LLC has with the ERC to turn the McCurdy Hotel into 80 – 90 apartments?…that it seems as though a knight on a white horse by the name of Randal Lloyd of Bloomington, IN is partnering up with Ben Kunkel of the Kunkel Group to offer the ERC an escape path from the labyrinth that they have built themselves into?…that this may actually be a good thing but that this incarnation of the ERC needs to remember the word VETTING and engage in a VETTING exercise with respect to assigning this project?

IS IT TRUE that the McCurdy at present is still in a state of default on its latest real estate taxes?…that in the real world that private homeowners and developers live and work in that real estate taxes have to be paid for a title to be transferred?…that liens on properties have to be released for titles to transfer and that a lien is recorded by 5th 3rd Bank on the McCurdy Hotel?…that to complicate matters even more that City Centre Properties holds a 40 year lease that is presumed to be “PAID IN FULL” since it is only $1 on the parking lot of the McCurdy Hotel?…that yes this is the one that the City of Evansville paid $603,000 to buy so they could lease it out for $1 for 40 years?…that prior to any serious discussion about what can be done going forward these three things obstacles must be removed?

IS IT TRUE that if there was ever a project that is in a complete state of disarray that the McCurdy is it and that a last minute ratification of a presumed quick fix or a smoke and mirrors trick that grabs yet another headline for illusionary political purposes is yet another BALL AND CHAIN hoisted onto the Winnecke Administration and yet another middle finger right in the face of the people of Evansville?…that the ERC should listen and make full public disclosure of whatever is said on Wednesday and then make their recommendation to the next ERC if they wish to spend their last 4 days VETTING this new group to do so?

IS IT TRUE that this ERC has spent 8 years without recognizing or practicing basic VETTING techniques and that it appears as though we are all 48 hours from the potential approval of a $13 Million project to an UNTESTED and UNVETTED company for a project in downtown Evansville?

IS IT TRUE that the City County Observer does not wish to burden our readers or ourselves with that which is wrong with society for the next two days and will therefore take this opportunity to wish each and every person who reads our work a very Merry Christmas?…that we shall be back to our calling on Monday December 26th, 2011?

IS IT TRUE? December 23, 2011

IS IT TRUE that the appointments keep rolling out of the Transition Team and that two more blue chippers are being announced today?…that Russ Lloyd Jr. will be our next City of Evansville Controller?…that the unwritten rule of being controller is that job one is that you can’t run out of cash to pay the bills?…that former Mayor and soon to be Controller Lloyd will have his handfuls paying the bills that are being run up by the Weinzapfel Administration in its last days in office?…that whatever the budget for 2012 was thought to be it is already busted by Mayor Weinzapfel’s December spending binge?

IS IT TRUE that Ted Ziemer will be name to be the next City of Evansville Attorney?…that this is another win for Mayor Elect Winnecke and his Transition Team?…that few people know that Mr. Ziemer was a champion of placing roughly $500,000 of the Vanderburgh County economic development funds into the hands of GAGE to help local businesses back in 2008 when Mayor Weinzapfel and Tom Barnett were redirecting revolving loan funds to pay for Front Door Pride houses, most of which are still sitting empty with a for sale sign up at nearly $100,000 less than was paid to build them?…that a champion for business who can actually add a column of numbers will be a welcome addition to the Office of the Mayor of Evansville?

IS IT TRUE that our illustrious Evansville Redevelopment Commission paid $603,000 for a parking lot and then turned around and leased that same parking lot to City Centre Properties LLC for a total of $1.00 for 40 years?…that we wonder if CCP has paid that dollar because if they have they control the parking lot for the next 36 years?…that if CCP wants to make some real trouble they could just hold onto that parking lot to get out of the parts of the deal that may not be so favorable to them?…that the chickens have come back to roost at the McCurdy with the pigeons, bats, snakes, and rats?

IS IT TRUE that it has now been 1,700 days since the announcement was made on May 14, 2007 that the McCurdy Hotel was to be refurbished into luxury apartments?…that it has now been 1,553 days since the Evansville Redevelopment Commission at the request of Mayor Weinzapfel approved the spending of $603,000 to purchase the parking lot?…that City Centre Properties and Scott Kosene the developers of the McCurdy project are both listed as contributors to the Weinzapfel for Mayor committee for 2010?…that that there are 8 days remaining in the Weinzapfel Administration?

IS IT TRUE that there are now 309 days remaining in the two years that the EPA had given the City of Evansville to present an acceptable solution to the Combined Sewer Overflow problem?…..that this plan is an expensive and complex endeavor that needs immediate attention to avoid the embarrassment and expense of another round of fines?

IS IT TRUE that the MAGICAL MYSTERY DEVELOPER has been identified and that once again the Kunkel Group has a tie to something proposed in downtown Evansville?…that there is nothing wrong with that but with as in all projects that involve financing these days it will be very important that the CASH DOWNPAYMENT that will become equity in the project needs to be secured, proven beyond the shadow of a doubt, and locked away before the Evansville Redevelopment Commission signs onto another open ended, whenever you are ready we are ready agreement with anyone?

IS IT TRUE that the official name of the newly formed Bloomington based business that is the latest in line to turn the McCurdy Hotel into apartments will be called McCurdy Development LLC and includes Ben Kunkel and Randal Lloyd among its partners?…that from a construction cost perspective McCurdy Development seems to have a little more of a realistic expectation of what the cost to refurbish a vintage hotel into 80 or so apartments will be?…that it has been reported that McCurdy Development is owning up to a new estimate of $13 Million for the job to be completed?…that this works out to $162,500 per apartment?…that we assume that the figure includes returning the lobby and other common areas to their former grandeur?…that a good rule of thumb is that the rent for such units will need to be in the range of 1% of the cost per month or $1,625 to make the project cash flow?…that renting out 80 apartments at a price of $1,625 per month in downtown Evansville is a very aggressive goal?

IS IT TRUE that at this rent level the annual expected revenue at 85% occupancy including some retail space will be about $1.4 Million yielding a value of roughly $10 Million at a typical GRM (gross rent multiple) of 7?…that given a post construction value of $10 Million that at 70% loan to value a loan of $7 Million should be possible to secure?…that will only leave a GAP OF $6 MILLION to be made up for with equity or economic incentives?…that there have already been economic incentives of $1.403 Million squandered on this project so the CCO wonders just how deep the well of the ERC is?…that unless McCurdy Development LLC comes forth with cash equity of about $3 Million and incentives of another $3 Million are made available that the City of Evansville will be in for another ride on the “MAD HATTER’S TEA PARTY” from Disneyland to get this thing financed?…that we shall cross our fingers that next Tuesday’s special meeting will include a financing plan that addresses the financial plan?

IS IT TRUE that as with the other BALLS & CHAINS that the Weinzapfel Administration has been heaping onto the incoming Winnecke Administration that it is our firm belief that the decision on the McCurdy needs to be made by what shall surely be a different cast of characters on the ERC?…that holding special meetings by an outgoing ERC presided over by and outgoing Director of DMD to assign and bless yet another deal that is of importance has pushed the envelope of arrogance and hubris past the point that the City of Evansville has ever seen or shall ever see again?…that the True Colors of the Weinzapfel Administration have completely obscured the façade in the last 6 weeks?

IS IT TRUE that we are certain that the paparazzi seeking missile known as Mayor Weinzapfel will be at the front of the pack for pictures next Tuesday morning or before taking credit for searching the world over and finding a substitute developer for the McCurdy in a week?…that we wonder exactly why this knight on a white horse did not show up two years ago?…that we wonder just how much of an impediment the $800,000 in incentives paid to City Centre, the $603,000 parking lot, the roughly $1 Million mortgage at Fifth Third Bank, and the allegedly outstanding bills of over $300,000 will be to the assignment of the development agreement?…that with secured notes like that on the McCurdy this special meeting may struggle to maintain specialness?